BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 1071            
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          |Author:    |Allen                                                |
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          |Version:   |February 16, 2016                      Hearing Date: |
          |           |    April 20, 2016                                   |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Lynn Lorber                                          |
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          Subject:  Special education funding:  preschool-age individuals  
          with exceptional needs


            SUMMARY
          
          This bill requires, upon an appropriation in the Budget Act, a  
          permanent one-time adjustment to the base funding calculation  
          for each special education local plan area to support special  
          education and related services for three and four year old  
          preschool children with exceptional needs.

            BACKGROUND
          
          Existing law:

          1)   Establishes a funding mechanism for special education  
               (known as AB 602 funding) that is based on the average  
               daily attendance of K-12 students within each special  
               education local plan area (SELPA).  

          2)   Requires the Superintendent of Public Instruction to make  
               specified computations to determine the amount of funding  
               for each SELPA.  
          (Education Code § 56836.08, et seq.)

          The annual Budget Act funds the State Preschool Program to  
          provide both part-day and full-day services to eligible three  
          and four-year old children.








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          The 2015 Budget Act included funding to add 2,500 part-day  
          preschool slots with priority for state preschool contractors  
          that intend to use these slots to increase access for children  
          with exceptional needs.  

          The federal Preschool Grants program provides formula grants to  
          States for the provision of special education and related  
          services for children with exceptional needs age 3-5.  

            ANALYSIS
          
          This bill requires, upon an appropriation in the Budget Act, a  
          permanent one-time adjustment to the base funding calculation  
          for each SELPA to support special education and related services  
          for three and four year old preschool children with exceptional  
          needs.  Specifically, this bill:

          1)   Requires, upon an appropriation in the Budget Act, a  
               permanent one-time total adjustment to the base funding  
               calculation for each special education local plan area  
               (SELPA) to support special education and related services  
               as required pursuant to a child's individualized education  
               program, for three and four year old preschool children  
               with exceptional needs.

          2)   Requires the Superintendent of Public Instruction,  
               beginning with an unspecified fiscal year, to use the  
               following formula to compute an apportionment for each  
               SELPA:

                    a)             Divide the dollar amount appropriated  
                    in the Budget Act for this purpose by the December  
                    2015 count of three and four year old children with  
                    exceptional needs throughout the state to establish a  
                    preschool per-pupil rate.

                    b)             Multiply the amount in (a) by each  
                    SELPA's December 2015 count of three and four year old  
                    children with exceptional needs.  This bill requires  
                    the produce of this amount to be added to each SELPA's  
                    base calculation as a permanent adjustment.

          3)   States legislative findings and declarations relative to  
               the increase in the population of preschool-age students  








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               with exceptional needs, and the adoption of a state funding  
               mechanism for these students being necessary to establish  
               new or expanded high-quality preschool programs.

          STAFF COMMENTS
          
          1)   Need for the bill.  According to the author, "Currently,  
               the Individuals with Disabilities Education Act (IDEA)  
               requires school districts to provide educational services  
               to preschool-age children with disabilities but the state  
               does not provide dedicated funding for these services.  As  
               a result, school districts use K-12 Local Control Funding  
               formula dollars and other local education funds to backfill  
               these costs.  During the 2013-14 school year, school  
               districts reported through their regional special education  
               agencies expenditures of more than $490.7 million on  
               legally mandated services to preschool age three and  
               four-year old children with disabilities, and reported  
               receiving only $97 million from federal grants to cover the  
               costs, leaving a hole of nearly $400 million that was  
               covered using other local education funds."
          
          2)   Existing sources of funding.  Local educational agencies  
               currently use a variety of funds to provide special  
               education and related services to preschool children with  
               exceptional needs.  Such funds include: 

               a)        Federal funding specifically for preschool  
                    children with exceptional needs (totaling $97 million  
                    in 2014-15).

               b)        State funding for the State Preschool Program,  
                    which serves children with and without disabilities  
                    (totaling approximately $884 million in 2015-16). 

               c)        State AB 602 funds for special education and  
                    related services for K-12 students (these funds are  
                    based on the average daily attendance; children in  
                    preschool do not generate ADA).

               d)        State funds for the local control funding formula  
                    (Proposition 98).

               The 2015 Budget Act included $12 million to add 2,500  








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               part-day preschool slots, with priority for state preschool  
               contractors that intend to use these slots to increase  
               access for children with exceptional needs.  
               
          3)   Special Education Task Force.  The Statewide Task Force of  
               Special Education was established for the purpose of  
               studying why students with disabilities were realizing poor  
               school and postsecondary outcomes, identifying the barriers  
               to better performance, and providing recommendations for  
               how to change the state's system of education so it would  
               better serve all students.  The task force released a  
               comprehensive report in March 2015, titled One System:  
               Reforming Education to Serve ALL Students.  This bill  
               addresses recommendations included in the task force  
               report; specifically, the Finance Subcommittee Report  
               recommended that an additional $150 million be provided to  
               special education local plan areas in the form of a  
               supplemental grant for preschool children with  
               disabilities.  This would equate to approximately $3,000  
               for each preschool child with disabilities identified as  
               needing special education services.   
                http://www.smcoe.org/assets/files/about-smcoe/superintendent 
               s-office/statewide-special-education-task-force/Final%20Fina 
               nce.pdf  

          4)   Pending report.  The Public Policy Institute of California  
               has just recently begun to conduct a study of the state's  
               special education finance system.  A report related to that  
               study is expected this Fall, and could help inform the  
               development of a funding stream specifically for special  
               education and related services for three and four year old  
               preschool children with exceptional needs.

          5)   How many children?  This bill requires the apportionment to  
               be based upon the December 2015 count of three and four  
               year old children with exceptional needs throughout the  
               state.  According to the California Department of  
               Education, the December 2014 count found 47,530 children.

          6)   Which fiscal year?  This bill requires the Superintendent  
               of Public Instruction, beginning with an unspecified fiscal  
               year, to compute an apportionment for each special  
               education local plan area.  According to the author, the  
               specific fiscal year will be identified once more  








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               information is available with regard to an appropriation in  
               the Budget Act.  

          7)   Fiscal impact.  This bill calls for a permanent one-time  
               adjustment to the base funding calculation for each special  
               education local plan area.  Based on the formula for  
               calculating this adjustment, the initial cost should be  
               approximately $150 million.  Building this adjustment into  
               the base would result in on-going annual costs of $150  
               million.  



            SUPPORT
          
          Alameda Unified School District
          Albany Unified School District
          Association of California School Administrators
          California Association of School Business Officials
          California School Funding Coalition
          Clovis Unified School District
          Coalition for Adequate Funding for Special Education
          Contra Costa County Office of Education, Director of Special  
          Education
          Contra Costa Special Education Local Plan Area (SELPA)
          Davis Joint Unified School District, Director of Special  
          Education
          East San Gabriel Valley SELPA
          Fresno County SELPA
          Greater Anaheim SELPA
          Humboldt-Del Norte SELPA
          Manhattan Beach Unified School District, Children's Services
          Merced County SELPA
          North Inland Special Education Region
          North Region SELPA
          Northeast Orange County SELPA
          Oak Park Unified School District
          Palo Alto Unified School District
          Palo Alto Unified School District, Division of Student Services
          Placentia-Yorba Linda Unified School District, Educational  
          Services
          Pomona Unified School District, Special Education Department
          Redondo Beach Unified School District, Office of Educational  
          Services








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          Riverside County Superintendent of Schools
          Rocklin Unified School District
          Romoland School District, Director of Pupil Services
          Sacramento City Unified School District
          San Diego South County SELPA
          Sanger Unified School District, Director of Pupil Personnel  
          Services
          San Juan Unified School District, Special Education Department
          San Luis Obispo County SELPA
          Santa Clara Unified School District, Director of Special  
          Education
          Santa Clarita Valley SELPA
          SELPA Administrators of California
          Stockton Unified SELPA
          Stockton Unified School District, Special Education Department
          Torrance Unified School District
          Tri-City SELPA
          Tuolumne County Superintendent of Schools, Director of Special  
          Education and SELPA
          Ukiah Unified School District, Director of Special Education
          Ventura County SELPA
          West Contra Costa Unified School District, Special Education  
          Department
          West End SELPA
          West Orange County Consortium for Special Education
          West San Gabriel Valley SELPA
          Willits Unified School District, Director of Special Education
          Yolo County Office of Education
          Yolo County SELPA

            OPPOSITION
           
          None received.

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